Switzerland’s central bank ends 8-year negative rate period

ISTANBUL

Switzerland’s central bank on Thursday decided to increase its policy rate by 75 basis points to 0.5%, exiting the negative rate period which started in 2014.

The bank said the decision was taken in response to the growing threat of inflation.

The country’s annual inflation rate was at 3.5% in August.

“The new forecast puts average annual inflation at 3% for 2022, 2.4% for 2023 and 1.7% for 2024,” the central bank said.